Firm needs real shot in the arm

Gordon Brown said yesterday that Britain can be a "world leader" in stem cell research. But there was little sign of what companies in the area need most: cash.

ReNeuron is developing stem cell-based treatments for strokes, Parkinson's disease and diabetes. It hopes to start trials of its technology in paralysed stroke patients next year.

To do so it needs money, and fundraising in the private sector has been tough.

While the Guildford-based company welcomed yesterday's measures to create a national network for stem cell research, extend the research tax credit system and reduce regulation on small businesses, the item at the top of its wish list was absent.

"It's a step in the right direction but a little short on detail," said Michael Hunt, the chief operating officer, yesterday. "We have a leading position in strokes, Parkinson's and diabetes. To maintain that lead we need money. It's very simple."

He is confident the firm can persuade investors to back it. He also hopes a private sector initiative, the UK Stem Cell Foundation, will attract private sector donations to advance the technology.

The company would like public funding to become another option. Recent government pledges to boost science spending have tended to go on earlier-stage research, Mr Hunt said, rather than the expensive process of human trials. "There has to be a commitment to support and assist in funding to get progress through clinical trials," he said.

The chancellor's "stem cell initiative" might help the firm raise funds. "The ability to say [to potential investors] that the UK remains a benign and supportive environment to conduct stem cell research is positive," said Mr Hunt.

He said he is looking for ward to a government report on the research tax credit system in the summer, as the company benefits from cash injections from this scheme.

On the pledge to reduce regulation, he said: "The steps to rein back the regulatory burden on small businesses is to be welcomed, although it is somewhat short on detail."